Tether Reveals $82 Billion Reserves Amid Crash Reports

Tether released its $82 billion reserves on Twitter to its users so as to silence haters regarding crash reports

Tether Reveals $82 Billion Reserves Amid Crash Reports
Tether Reveals $82 Billion Reserves Amid Crash Reports

Tether Loses User’s Trust Following LUNA Crash

Just over a week ago, when Terra and its UST stablecoin failed, there was a lot of panic in the stablecoin market.

Some of them, like USDC and BUSD, felt pretty good because they were trading at a higher price than the market.

Others, like USDN, DEI, and USDT, were put under a lot of pressure, mostly because users didn’t trust them.

As one of the most popular stablecoins, USDT from Tether seems like it should be able to ride out this market chaos and be a safe place for investors’ money.

But the public still doesn’t fully trust Tether (USDT) because of its problems with the U.S. SEC and the number of reserves that seems too high.

— Ki Young Ju (@ki_young_ju) May 17, 2022

The situation has also gotten worse because Tether Holdings put out a list of reserves in December 2021 that included a lot of commercial papers.

The problem with commercial papers is that they are much less liquid, which means they would be harder to get rid of in a financial crisis.

Major analysts have repeatedly warned Tether about this, and Tether’s CTO has agreed with them, saying that they are reducing their holdings of these securities and increasing their exposure to U.S. Treasuries.

Tether Reassures Users, Shuts Down Crash Reports

Lastly, on May 19, Tether released its consolidated reserves report, which showed a 17 percent drop in commercial paper from $24.2 billion to $19.9 billion from one quarter to the next.

The attestation, which was done by independent accountants MHA Cayman, shows the group’s assets as of March 31, 2022.

  • At least $82,424,821,101 is in total assets when they are all added up.
  • The group’s total assets are greater than its total debts.
  • The group’s reserves for digital tokens it has given out are more than the amount needed to redeem them.
  • With a focus on shorter-term assets, the average maturity of consolidated assets has dropped by a lot.

The group’s investments in money market funds and U.S. Treasury bills went up from $34.5 billion to $39.2 billion, which is an increase of more than 13%.

The CTO of Tether, Paolo Ardoino, also said something about the report. He said that the past week shows how strong and resilient Tether is. Tether is fully funded, and its reserves are made up of things that are solid, conservative, and easy to use.